CA Online

Centre proposes fixed-term labour contracts The Union labour ministry recently issued a draft notification that would allow fixed-term employment across sectors and also approved moves by some states to amend the Industrial Disputes Act so that factories employing up to 300 workers can close or retrench labour without seeking government approval. The draft notification on fixed term contracts is part of the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018, and enables companies to hire workers for short term assignments and terminate their services when projects are completed. Once notified by the Centre, states can amend their rules accordingly. The draft notification has been uploaded on the ministry's website for stakeholder comments. Under fixed-term employment, workers are entitled to statutory benefits available to a permanent worker in the same factory, including work hours, wages, and allowances. However, employers need not give notice to fixe

FinMin asks PSU banks to be in hot pursuit of bad loans The finance ministry has directed state-run banks to set up a separate stressed asset management and recovery team that will be responsible for stringent recovery follow-up. While most top public sector banks already have set up teams to manage bad loans, market watchers believe that the finance ministry's directive will push midsized and small PSU banks to take bad loan recovery seriously. "Most state-run banks already have stressed asset management teams who only focus on recovery from such assets but, yes, we agree that a focused approach is required and the government push should help in bringing in that discipline among lenders," a PSU bank official said on condition of anonymity. Experts also said a separate vertical for managing bad loans would accelerate resolution of the bad loans mess and help recovery, which could lead to write back of provisions in the next two years, boosting profits."These

GDP may grow to 7% in FY19 as GST impact wanes: HSBC It can be noted that International Monetary Fund has come out with an estimate of 7.4 percent growth two days ago. British lender HSBC said waning effects from the GST impact will help push the Indian GDP growth to 7 percent in FY19.It can be noted that International Monetary Fund has come out with an estimate of 7.4 percent growth two days ago."For India, we are expecting the economy to grow in the next three years (FY18-20) by 6.5 percent, 7 percent and 7.6 percent," the bank’s chief economist Pranjul Bhandari told reporters on a conference call. She added that the growth has slid from previous year’s 7.1 percent to 6.5 percent in FY18 due to the implementation of the Goods and Services Tax (GST)."As some of the short-run disruptions caused by GST get ironed out, we expect growth to rise in the next couple of years," she noted. Bhandari added that from a medium-term perspective of about three years, th

GST may prove a drag on India’s ease of doing business ranking Govt officials are worried that complex returns filing procedures and delays in refund of input tax credits under GST regime may prove a drag on India’s ease of doing business ranking for 2019 A year after India recorded its sharpest jump of 30 places to 100th place in the 2018 World Bank’s ease of doing business rankings, government officials are worried that complex returns filing procedures and delays in refund of input tax credits under the goods and services tax (GST) regime may prove a drag on the country’s ranking, to be released in October. “The survey for the next Doing Business ranking will start in February and will continue till May. Unless government takes quick corrective steps, GST may prove to be a dampener in the first (post-GST) year of the ranking though it will improve our ranking in subsequent years,” a commerce and industry ministry official said, speaking on condition of anonymity. The offic

E-commerce firms may get 6-month tax breather The provision of tax collected at source (TCS) imposed on suppliers selling products on e-commerce websites like Flipkart and Amazon in the goods and services tax (GST) regime is likely to be deferred by six months.The recommendation by the law review committee may come as a breather for e-commerce players, which have been strongly opposing the additional levy. The TCS of 1 per cent to be charged collectively by the Centre and states was kept in abeyance till April 1, 2018, by the GST Council in October along with the reverse charge mechanism and the e-way bill. However, in light of revenue leakage concerns, the e-way bill to track movement of inter-state supply of goods will be implemented from February 1, while reverse charge mechanism on composition dealers may be implemented any time now. “The provision pertaining to TDS and TCS can be kept in abeyance for at least six more months, is the view taken by the law committee,” said a

India shaking off GST roll-out woes, but oil price a risk: S&P S&P Global Ratings on Tuesday said the Indian economy is shaking off its post-GST implementation woes but risks from higher oil prices have reappeared. In its report S&P said overall economic risks in India remain low with pick up in industrial output and bank credit. International oil prices have been rising, which has also led to increased prices of petrol and diesel. A majority of India’s import bill stem from crude oil purchases. Last year, during the July-September quarter, the Indian economy expanded by 6.3 per cent as manufacturing picked up and businesses adjusted to the new tax regime. The Business Standard, New Delhi, 24th January 2018

SEBI GDR crackdown runs into foreign hurdles Market regulator gets little help from overseas counterparts The Securities and Exchange Board of India’s (Sebi’s) investigation of money laundering by Indian nationals through foreign capital markets seems to have hit a hurdle. According to sources, Sebi has sought several key pieces of evidence from foreign agencies, but a majority of these requests have been pending for months. The Securities and Exchange Board of India’s (Sebi’s) investigation into money laundering by Indian nationals through foreign capital markets appears to have hit a hurdle. According to sources, the Indian regulator has sought several key pieces of evidence from foreign agencies, but a majority of these requests have been pending for months, stalling further investigations. In many of the cases, foreign regulators are also reluctant to share information, especially bank account details. Legal experts say Sebi has agreements with market regulators of 30 cou